Correlation Between Solid Power and Cohen Steers
Can any of the company-specific risk be diversified away by investing in both Solid Power and Cohen Steers at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Solid Power and Cohen Steers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solid Power and Cohen Steers Real, you can compare the effects of market volatilities on Solid Power and Cohen Steers and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Solid Power with a short position of Cohen Steers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solid Power and Cohen Steers.
Diversification Opportunities for Solid Power and Cohen Steers
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Solid and Cohen is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Solid Power and Cohen Steers Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohen Steers Real and Solid Power is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Solid Power are associated (or correlated) with Cohen Steers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohen Steers Real has no effect on the direction of Solid Power i.e., Solid Power and Cohen Steers go up and down completely randomly.
Pair Corralation between Solid Power and Cohen Steers
Given the investment horizon of 90 days Solid Power is expected to generate 12.36 times more return on investment than Cohen Steers. However, Solid Power is 12.36 times more volatile than Cohen Steers Real. It trades about 0.18 of its potential returns per unit of risk. Cohen Steers Real is currently generating about 0.02 per unit of risk. If you would invest 317.00 in Solid Power on May 31, 2025 and sell it today you would earn a total of 115.50 from holding Solid Power or generate 36.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Solid Power vs. Cohen Steers Real
Performance |
| Timeline |
| Solid Power |
| Cohen Steers Real |
Solid Power and Cohen Steers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Solid Power and Cohen Steers
The main advantage of trading using opposite Solid Power and Cohen Steers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solid Power position performs unexpectedly, Cohen Steers can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cohen Steers will offset losses from the drop in Cohen Steers' long position.| Solid Power vs. Microvast Holdings | Solid Power vs. Bloom Energy Corp | Solid Power vs. Enovix Corp | Solid Power vs. Plug Power |
| Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low | Cohen Steers vs. Cohen Steers Low |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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